China fears and EU vote could derail plans to raise interest rates in 2016 September 23, 2015 The first UK interest rate hike could be delayed be until 2017 due to the uncertainty created by an in-out referendum on Britain’s EU membership, economists have said. Investment bank Citi yesterday said it was slashing its global growth rate forecasts and shifted its prediction for the first Bank of England rate hike to final [...]
UK hotel prices: Scotland drags down average cost of a hotel room in first half September 23, 2015 UK hotel prices fell by one per cent in the first half of the year, with hotels in Scotland experiencing the biggest decline, new research shows. Guests paid an average room rate of £104 per night in the first half of the year, according to The Hotels Price Index (HPI), a survey by online accommodation [...]
Bank of England’s Ben Broadbent: UK productivity is not as bad as it looks September 23, 2015 The weakness in productivity growth in the UK may not be a sign of something inherently wrong with the economy, but could be due to more subtle changes in the jobs market, the Bank of England’s deputy governor for monetary policy said today. Productivity normally grows each year, but its stagnation since the 2008 financial crisis [...]
London jobs will be safe from the National Living Wage September 23, 2015 While some business figures have warned about the potentially nasty side-effects of the government's National Living Wage it appears London will be largely immune from this. The National Living Wage means employees aged over 25 will be paid £7.20 an hour from next April, rising to 60 per cent of median earnings in 2020, estimated to be [...]
Eurozone economy expanding – but “worrying failure of growth” remains September 23, 2015 The Eurozone economy expanded in September, continuing a year of robust growth, according to survey figures released this morning. Markit’s flash purchasing managers’ index (PMI) scored 53.9 for this month, down slightly from August but still above the 50 score that implies no growth and in line with economic growth. France’s economy improved in September, with the [...]
Blow for George Osborne’s deficit plans as public borrowing climbs in August September 23, 2015 Government borrowing jumped in August, ending a positive run of results for chancellor George Osborne this year. Public sector borrowing excluding state-owned banks was £12.1bn in August, up £1.4bn on the same month last year, according to figures released this morning by the Office for National Statistics. This was the biggest August deficit since 2012. Despite the rise, [...]
Hedge fund Marshall Wace lends support to Labour leader Jeremy Corbyn’s economic policy People’s QE September 23, 2015 One of Britain's wealthiest hedge fund managers has leant weight to what's arguably the cornerstone of new Labour leader Jeremy Corbyn's economic policies – so-called People's QE. People's QE would involve the Bank of England (BoE) investing "in large-scale housing, energy, transport and digital projects". But critics, including Bank of England governor Mark Carney, have [...]
Chinese economy: Slowdown fears renewed as manufacturing industry activity falls to new low September 23, 2015 China’s manufacturing sector has fallen to a six-and-a-half year low, renewing fears of a slowdown in the world’s second largest economy, according to a survey. The Caixin/Markit manufacturing purchasing managers’ index (PMI) fell from 47.3 in August to 47 in September, missing expectations of a 47.5 reading. A figure below 50 suggests contraction in manufacturing, [...]
British American Tobacco turns to ecigarettes to stay ahead but share price closed on five-day low September 23, 2015 British American Tobacco (BAT) yesterday signed a conditional agreement to buy ecigarette manufacturer CHIC for an undisclosed sum. BAT hopes to extend its reach through Europe and expand beyond its tobacco cigarettes to make the most of the growing ecigarette movement – which are widely viewed as a healthier option. CHIC, Poland’s e-cigarette market-leader, makes [...]
Student spending on the rise as living costs shoot up in the UK September 23, 2015 Student spending could reach its highest ever level this academic year, and may hit over £30bn in total for 2015, according to research from Experian Marketing Services. Students in Manchester are predicted to spend over £1.1bn over the course of this academic year, while Nottingham will see a total student spend of around £800m. According [...]